delegation of purchasing authority program (dpap)€¦ · under the delegation of purchasing...

Delegation of Purchasing Authority Program

Indiana Department of AdministrationPROCUREMENT DIVISION

Delegation of Purchasing Authority Program (DPAP)

VERSION 21.04-08

2

ContentsIntroduction ............................................ 4Purchasing Authority ............................................... 4

Methods and Types ................................................... 4

Purchasing Methods and Types Overview ................................................................. 5Prepurchase Considerations .................. 6Mandatory Purchasing from QPAs ....................... 6

Potential for Savings? (QPA Exception) ........................................................ 7

Purchasing from Indiana Correctional Industries and Ability Indiana ............... 8Indiana Correctional Industries – IC 5-22-11 ..... 8

Ability Indiana – IC 5-22-12 .................................... 8

Is the Item available from Indiana Correctional Industries or Ability Indiana Catalogs? ............... 8

Purchasing from Indiana Correctional Industries and Ability Indiana Catalogs Flowchart ................................................ 9Printing Purchases/Mail and Copy Services ..... 11

Procurement Contract Options ............................. 11

Addendum................................................................... 11

Addendum Development ......................................... 12

Contract for Services .............................................. 12

Contract Termination ............................................... 12

Electronic Contracting Process ............................ 13

Preparing Specifications ....................... 16Grammatical Style and Terminology ................... 16

Types of Specifications ........................................... 16

Brand Name ............................................................... 16

Design .......................................................................... 17

Performance/Functional ......................................... 18

Specification Formatting ........................................ 18

Specifications Using Equipment Trade-ins ........ 20

Assistance with Writing Specifications .............. 20

Initiate Purchase Request and Required Approvals................................................ 20Create a Requisition ................................................ 20

Requisition Routing Procedures and Special Approvals.................................................................... 20

Non-Competitive Purchases .................. 22Purchases less than $500 only............................. 22

Competitive Solicitation Methods ......... 23Purchases $500 to $5,000 ...................................... 23

Informal Written Quotes ......................................... 23

Purchases $5,000 to $75,000................................. 25

PeopleSoft Preprogrammed Comments 26Procurement Contract Language ......................... 28

Purchases $75,000 and Above .............................. 32

Small Business Set-Aside Program ......... 32Pre-Award Solicitation Activities ........... 33Notice of Addendum ................................................ 33

Canceling a Solicitation .......................................... 33

Receiving Solicitation Responses ........................ 33

Evaluating Solicitation Responses ......... 34When determining which bidder should receive the award, there are details that must be considered in evaluating the responses. ...................................... 34

Fair and Reasonable Pricing ................................. 36

Purchasing Preferences ........................ 36Absolute Preferences .............................................. 36

Commodity-Based Preferences ............................ 36

Price Preferences ..................................................... 37

Split Awards .............................................................. 41

Processing Split Awards ........................................ 42

Exceptions ................................................................. 42

MBE and WBE Participation ................................... 43

Special and Emergency Procurements 45Instruction Page ........................................................ 45

Indiana Code related to special procurements 46

Preparation for Solicitation Award ........ 49DPAP Solicitation Summary .................................. 49

Procurement Contract Checklist .......................... 50

DOR and DWD Clearance Checks ......................... 51

Secretary of State Registration ............................ 51

Secretary of State/Names on Procurement Contract Purchase Orders ....................................................... 52

Bidder Profile Registration .................................... 53

Buy Indiana Certification ........................................ 53

Auditor of State Supplier File ............................... 54

Procurement Contract Review and Signature/Approval Routing ...................................................... 55

State Surplus Requirements ................................. 58

Delegation of Purchasing Authority Program 3

Procurement Contract Maintenance Options .................................................... 59Amendment ................................................................ 59

Amendment Checklist ............................................. 60

Renewal ...................................................................... 61

Awarding Solicitations and Maintaining Purchasing Records ............................... 62All of these records can be maintained electronically.......................................... 62Commodity Purchases under $500 ...................... 62

Commodity Purchases $500 to $5,000 ............... 62

Commodity Purchases $5,000 to $75,000 .......... 62

Purchases over $75,000 processed through IDOA Procurement .............................................................. 63

Procurement Contracts ......................................... 63

Procurement Contract Life Cycle and Paperwork Submission ................................................................. 63

Procurement Compliance Audits .......... 65The Purpose ............................................................... 65

The Process ............................................................... 65

Legalities ................................................. 66IDOA Procurement Requires the Nomination of a Head Procurement Agent ....................................... 66

Artificially Dividing ................................................... 67

Important General Information .............. 67Financial Disclosure Statement ........................... 67

Guidelines for Ethical Contracting Practices .... 67

Social Security Number Protection and Breach Notification ................................................................. 68

Shipping Terms ......................................................... 68

UNSPSC Categories ............................................... 68

Website Information ............................................... 69

PeopleSoft Help ........................................................ 69

Buy Indiana! ............................................................... 69

Attachments Attachment A ......................................... 70Templates and Documents ..................................... 70

State Forms ............................................................... 70

Attachment B .......................................... 71Split Award Example ............................................... 71

Attachment C ......................................... 72Listing of State Boilerplate Clauses .................... 72

Attachment D ......................................... 85Procurement Contract Development ................... 85

Attachment E .......................................... 87Procurement Contracts Frequently Asked Questions ....................................................................................... 87

Attachment F .......................................... 91Verification of a Company’s Bidder Registration 91

Attachment G ......................................... 92Record of Document Updates ................................ 92

Version 20.05-22 ....................................................... 92

Version 20.05-21 ........................................................ 92

Version 19.05-03 ....................................................... 92

Version 18.09-06 ....................................................... 92

Version 18.05-31 ........................................................ 92

Version 18.03-02 ....................................................... 93

Version 18.01-03 ........................................................ 93

Version 17.06-20 ........................................................ 93

Document Key Please Note Indiana Code Resource

!Document Key

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Introduction

Purchasing AuthorityAs mandated by Indiana Code (IC 5-22-4-1), the Indiana Department of Administration (IDOA) is ultimately responsible for all State of Indiana procurements for agencies of the executive branch. IDOA may delegate their authority to agencies and individuals deemed qualified and responsible to make their own purchases according to the laws, policies, and procedures put in place to protect the integrity of the procurement process.

Under the Delegation of Purchasing Authority Program, agency-nominated Procurement Agents are trained in the requirements for procurement, and may be granted authority to make purchases for agencies on behalf of the IDOA following successful completion of a certification examination. Authority may be revoked at any time by the IDOA commissioner.

Methods and TypesThe estimated dollar amount and type of goods or services to be purchased generally determines the procurement method

required. Procurement methods and types include:

• Quantity Purchase Agreements (QPAs)

• Purchases from Indiana Correctional Industries

• Purchases from Ability Indiana

• Small Purchases (including Informal and Formal Request for Quotes)• Special Procurements

The IDOA Procurement Division provides templates and models on the Procurement Training web page that define each method.

• Prior to soliciting competitive pricing, the Procurement Agent must verify that items or services are not available from a QPA, Indiana Correctional Industries, Ability Indiana, or their own agency contract.

• Procurement Agents must get approval from the IDOA Contract Manager before purchasing goods or services from sources other than a QPA when goods or services are available on QPA contracts.

• All components of procurements should be in the State’s best interest.

• Purchases may not be artificially divided (split into two or more smaller purchases) to avoid the solicitation requirements that would apply to the total amount.

• All procurement files and activities are public information, making documentation extremely important. By providing the proper explanation, procurement agents may prove that procurement process requirements were met, fair and equitable competition was sought, and the best interest of the State of Indiana was protected while making the best possible use of taxpayer dollars.

IC 5-22-4-1 Purchasing agencies for agencies of executive branchSec. 1. (a) Except as provided in this chapter, the Indiana department of administration created by IC 4-13-1-2 is the purchasing agency for all agencies of the executive branch.

(b) Except as provided in this chapter, the individuals designated by the commissioner of the Indiana department of administration are the Procurement Agents for all agencies of the executive branch.

As added by P.L.49-1997, SEC.1..

The act of buying, purchasing, renting, leasing, or otherwise acquiring any goods or services, and all functions that pertain to obtaining goods or services, including the description of requirements, selection and solicitation of sources, preparation and award of a contract, and all phases of contract administration.

Procurement [proh-kyoo r-muh nt, pruh-] – noun

Procurement Training http://www.in.gov/idoa/2864.htmQuantity Purchase Agreements https://secure.in.gov/idoa/2450.htmIndiana Correctional Industries http://www.in.gov/idoc/penproducts/Ability Indiana http://www.abilityin.org/

https://secure.in.gov/idoa/2450.htmhttp://www.in.gov/idoc/penproducts/http://www.abilityin.org/http://www.in.gov/idoa/2864.htmhttps://secure.in.gov/idoa/2450.htmhttps://secure.in.gov/idoa/2450.htmhttp://www.in.gov/idoa/2864.htm


Purchase Type Procedure/Procurement Method to Follow

Available on a QPA

(Including Indiana Correctional Industries and Ability Indiana QPAs)

If it is available from a QPA, buy it from the QPA. The agency may request an exception from the IDOA Contract Manager if the savings is more than 10%.

Available from Indiana Correctional Industries or Ability Indiana and less than $500

(Not on QPA)

If it is available from Indiana Correctional Industries or Ability Indiana and the cost is less than $500, it must be purchased from them.

Available from Indiana Correctional Industries or Ability Indiana and more than $500

(Not on QPA)

If it is available from Indiana Correctional Industries or Ability Indiana and the cost is more than $500, they must be included in the solicitation. Their price must be compared to the prices of three outside quotes.

Less than $500 Competition is not required.

More than $500, but less than $2,500 Purchases more than $500 require three quotes via phone, email, fax or mail.

More than $2,500, but less than $5,000 Purchases more than $2,500 require three quotes via phone, email, fax or mail. Must have the Quotation Confirmation form and Terms and Conditions document signed by the supplier being awarded.

More than $5,000 Purchases more than $5,000 require formal quotes from three bidders, including the package of standard forms. Bidders must be given seven business days to respond.

Small Business Set-Aside Purchases more than $5,000 that fall into the list of UNSPSCs require formal quotes from three bidders, including the package of standard forms. Bidders must be given seven business days to respond. Statute dictates that only small businesses are solicited.

Special Procurement Follow the procedure based on the dollar amount of the purchase. If $500 to $5,000, complete the form (and all necessary paperwork warranted by the dollar amount) and keep it in the file. If over $5,000, complete the form and submit it (and all necessary paperwork) to IDOA for approval prior to making the purchase.

Procurement Contract Contracts less than $2,500 require three quotes via phone, email, fax or mail. Contracts more than $2,500 require the formal quotes from three bidders, including the package of standard forms and sample contract. Bidders must be given seven business days to respond.

Purchasing Methods and Types Overview

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Prepurchase Considerations

! Before buying anything, always check to see if it is available from a QPA. If it is, it must be purchased from the QPA, unless IDOA approves an exception.

Mandatory Purchasing from QPAsA Quantity Purchase Agreement (QPA), established by IDOA Procurement Division, is a contract for repetitively purchased items. They result from a competitive solicitation process; the supplier agrees to offer the quoted prices for the term of the contract based on the State’s estimated spend. Purchases may be made from these contracts at any time and no additional competitive solicitation is required.

All current QPAs can be found on the IDOA Procurement Division QPAs web page or through the State Intranet. Reviewing each QPA is necessary to understand the unique requirements and special instructions. QPA contracts are set up in different formats that determine the method used in PeopleSoft Financials to create a Requisition (web [punch-out], catalog [line items], or special request).

! All items available on QPA are categorized as either Market Basket or Non-Market Basket according to the following requirements. A Market Basket Item:

• Is typically identified with a Market Basket icon (see the example in the image on the right) in the PeopleSoft punch-out when creating a Requisition.

• Is identified with a PeopleSoft item number that is selected from the eProcurement catalog when creating a Requisition.

• Requires no special justification except for the copier, printer, fax machine, scanner and MFD QPA (See Requisition Routing Procedures and Special Approvals section).

A Non-Market Basket Item: • Is not identified with a Market Basket icon in the PeopleSoft punch-out when creating the Requisition.

• Does not have an item number available in the eProcurement catalog when creating a Requisition.

• May offer an item category discounted by a percentage off List Price.

• May require a special justification on office supplies, ink and toner QPA (See Requisition Routing Procedures and Special Approvals section).

! If the item to be purchased is available from more than one QPA, buy it from the one offering the lowest cost.

Quantity Purchase Agreements http://www.in.gov/idoa/2449.htmState Intranet http://www2.idoa.State.in.us/proc/

http://www.in.gov/idoa/2449.htmhttp://www.in.gov/idoa/2449.htmhttp://www2.idoa.state.in.us/proc/http://www.in.gov/idoa/2449.htmhttp://www2.idoa.state.in.us/proc/


Potential for Savings? (QPA Exception)If there could be more than 10% savings to buy outside a QPA, an exception may be requested from IDOA Procurement.

Savings ValidationGet three quotes from outside bidders using the procurement rules defined by the dollar amount of the purchase. Indiana Correctional Industries and Ability Indiana must be included in the solicitation in addition to the three quotes if what is being purchased is something they offer outside of their respective QPA products and services. (See section Purchasing from Indiana Correctional Industries and Ability Indiana).

Calculate the average of the quoted prices.

Î If the average cost of the three quotes does not indicate a savings of more than 10%, buy from the QPA.

Î If the average cost of the three quotes indicates a savings of more than 10%, an exception must be requested and approval granted before making the purchase. The request must be emailed to the IDOA QPA Contract Manager and include the justification and price comparison. Keep the approval email in the purchasing file. If approved by IDOA, the agency must buy from the approved Supplier.

Î If it is an emergency, purchase from the QPA.

The State Police need to buy Indiana and United States indoor flags. The QPA price from CVS Systems is $31.10 per flag. The Procurement Agent thought he might be able to save some money, so he got quotes from three other bidders for the same items. He validated these items are not available through Indiana Correctional Industries or Ability Indiana.

Acme $29.95

Global $30.50

A & R $33.25

The average of the quotes (all three added together, then divided by 3) is $31.23. In order to request an exception, there would have to be a savings of more than $3.11 (10% of the QPA price). In this scenario, he would buy the flags from the QPA. There was not enough savings to warrant requesting an exception.

If there had been a more than 10% savings (meaning that the QPA price was more than 10% HIGHER than the average), he could consider contacting the IDOA Contract Manager to request an exception.

Example: Price of QPA versus 3 Quotes

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Purchasing from Indiana Correctional Industries and Ability Indiana

! If an item or service is not found on a QPA, the next resources to check are the Indiana Correctional Industries and Ability Indiana catalogs (websites).

Indiana Correctional Industries – IC 5-22-11The Indiana Correctional Industries offers a variety of quality products and services to State and local government while equipping offenders for reentry through career development. The full Indiana Correctional Industries full catalog is available for viewing online.

Ability Indiana – IC 5-22-12The Ability Indiana work centers provide guaranteed products and services to State and local government while benefiting persons with disabilities. The Ability Indiana full catalog is available for viewing online. A current list of Ability Indiana suppliers can be found on their Certified Ability Indiana Organizations web page.

! Indiana code dictates that the items/services we buy from Indiana Correctional Industries and Ability Indiana meet our specifications and must be purchased at a reasonable price. If there is a tie in pricing between Indiana Correctional Industries and Ability Indiana, then buy from Indiana Correctional Industries.

Is the Item available from Indiana Correctional Industries or Ability Indiana Catalogs?

! Procurement Agents must become familiar with the products and services available from the Indiana Correctional Industries and Ability Indiana catalogs (websites). If what they sell is available on a QPA, buy it from the QPA unless an exception is approved and granted. If what they sell is not available on a QPA but is in their catalog, they must be included in the solicitation for those items when the purchase is more than $500.

If what the agency needs is not available from a QPA, but is available from the Indiana Correctional Industries or Ability

Indiana catalogs, and the total is less than $500, the purchase must be made from Indiana Correctional Industries or Ability Indiana.

If what the agency needs is not available from a QPA, but is available from the Indiana Correctional Industries or Ability Indiana

catalogs, and the total is greater than $500, get three competitive quotes plus include Indiana Correctional Industries or Ability Indiana in the solicitation.

Follow the requirements for soliciting the quotes based on the estimated dollar amount.

Î After analyzing the quotes, purchase from Indiana Correctional Industries or Ability Indiana if they provide the lowest quote.

Î If an outside bidder provides the lowest quote, then offer Indiana Correctional Industries or Ability Indiana the opportunity to match the lowest quote.

• If Indiana Correctional Industries or Ability Indiana can match the lowest quote, make the purchase from Indiana Correctional Industries or Ability Indiana.

• If Indiana Correctional Industries or Ability Indiana cannot match the lowest quote, calculate the average of the three competitive quotes.

• If Indiana Correctional Industries or Ability Indiana is within 10% of the average price, make the purchase from Indiana Correctional Industries or Ability Indiana.

• If Indiana Correctional Industries or Ability Indiana is not within 10% of the average price, document the opportunity was offered and make the purchase from the supplier providing the lowest quote.

Indiana Correctional Industries http://www.in.gov/idoc/penproducts/index.htmAbility Indiana http://www.abilityin.org/

http://www.in.gov/idoc/penproducts/2333.htmhttp://www.smartpartnersalliance.orghttps://web.abilityin.org/state_use/Certified-Ability-Indiana-Organizationshttp://www.in.gov/idoc/penproducts/index.htm


Purchasing from Indiana Correctional Industries and Ability Indiana

! If an item or service is not found on a QPA, the next resources to check are the Indiana Correctional Industries and Ability Indiana catalogs (websites).

Indiana Correctional Industries – IC 5-22-11The Indiana Correctional Industries offers a variety of quality products and services to State and local government while equipping offenders for reentry through career development. The full Indiana Correctional Industries full catalog is available for viewing online.

Ability Indiana – IC 5-22-12The Ability Indiana work centers provide guaranteed products and services to State and local government while benefiting persons with disabilities. The Ability Indiana full catalog is available for viewing online. A current list of Ability Indiana suppliers can be found on their Certified Ability Indiana Organizations web page.

! Indiana code dictates that the items/services we buy from Indiana Correctional Industries and Ability Indiana meet our specifications and must be purchased at a reasonable price. If there is a tie in pricing between Indiana Correctional Industries and Ability Indiana, then buy from Indiana Correctional Industries.

Is the Item available from Indiana Correctional Industries or Ability Indiana Catalogs?

! Procurement Agents must become familiar with the products and services available from the Indiana Correctional Industries and Ability Indiana catalogs (websites). If what they sell is available on a QPA, buy it from the QPA unless an exception is approved and granted. If what they sell is not available on a QPA but is in their catalog, they must be included in the solicitation for those items when the purchase is more than $500.

If what the agency needs is not available from a QPA, but is available from the Indiana Correctional Industries or Ability

Indiana catalogs, and the total is less than $500, the purchase must be made from Indiana Correctional Industries or Ability Indiana.

If what the agency needs is not available from a QPA, but is available from the Indiana Correctional Industries or Ability Indiana

catalogs, and the total is greater than $500, get three competitive quotes plus include Indiana Correctional Industries or Ability Indiana in the solicitation.

Follow the requirements for soliciting the quotes based on the estimated dollar amount.

Î After analyzing the quotes, purchase from Indiana Correctional Industries or Ability Indiana if they provide the lowest quote.

Î If an outside bidder provides the lowest quote, then offer Indiana Correctional Industries or Ability Indiana the opportunity to match the lowest quote.

• If Indiana Correctional Industries or Ability Indiana can match the lowest quote, make the purchase from Indiana Correctional Industries or Ability Indiana.

• If Indiana Correctional Industries or Ability Indiana cannot match the lowest quote, calculate the average of the three competitive quotes.

• If Indiana Correctional Industries or Ability Indiana is within 10% of the average price, make the purchase from Indiana Correctional Industries or Ability Indiana.

• If Indiana Correctional Industries or Ability Indiana is not within 10% of the average price, document the opportunity was offered and make the purchase from the supplier providing the lowest quote.

Indiana Correctional Industries http://www.in.gov/idoc/penproducts/index.htmAbility Indiana http://www.abilityin.org/

Purchasing from Indiana Correctional Industries and Ability Indiana Catalogs Flowchart

http://www.in.gov/idoc/penproducts/2333.htmhttp://www.smartpartnersalliance.orghttps://web.abilityin.org/state_use/Certified-Ability-Indiana-Organizationshttp://www.in.gov/idoc/penproducts/index.htm

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The Procurement Agent needs to buy 500 non-reflective traffic cones. After checking the Ability Indiana catalog, she found that Highway Safety Specialists carries the non-reflective traffic cones and their price is $8.45 each for a total of $4,225.00. The Procurement Agent thought she might be able save some money, so she got quotes from three other bidders for the same item:

Lowball $8.75 each for a total of $4,375.00

Mowball $8.50 each for a total of $4,250.00

Nowball $8.15 each for a total of $4,075.00

In this example, Highway Safety Specialists does not offer the lowest quote, so she contacts them to see if they can match it. Highway Safety Specialists agrees to match the lowest quote, so the Procurement Agent gets the required paperwork and awards the Purchase Order to them for $4,075.00.

Example: When Indiana Correctional Industries or Ability Indiana Can Price Match

The Procurement Agent needs to buy two 60” round top tables. After checking the Indiana Correctional Industries catalog, she found that they carry the tables and their price is $285.00 each for a total of $570.00. The Procurement Agent thought she might be able save some money, so she got quotes from three other bidders for the same item:

Acme $325.75 each for a total of $651.50

Bacme $310.50 each for a total of $621.00

Cacme $268.95 each for a total of $537.90

In this example, Indiana Correctional Industries does not offer the lowest quote, so she contacts them to see if they can match it. Indiana Correctional Industries cannot match the lowest quote, so she calculates the average of all of three outside quotes which is $603.47

$651.50 + $621.00 + $537.90 = $1,810.40

$1,810.40 ÷ 3 = $603.47

Indiana Correctional Industries is within 10% of the average price, so she must make the purchase from them.

100% x 570.00 (Indiana Correctional Industries’ price) = 57,000.00

57,000 ÷ 603.47(average price) = 94.45%

Indiana Correctional Industries is 5.54% from the average price

If Indiana Correctional Industries was not within 10% of the average price, the Procurement Agent would collect the required paperwork from Cacme and award the Purchase Order to them.

Example: When Indiana Correctional Industries or Ability Indiana Cannot Price Match


Printing Purchases/Mail and Copy ServicesThe procedures for printing purchases differ from those required for other commodities in that they are all initiated and funneled through a single supplier, the result of a contract established by IDOA. Located in the Indiana Government Center South, Post Masters is the current supplier managing all printing requests, copying, and mailing services.

There are two categories of classification for the purchase of printing according to the State’s definition.

• State Forms Print jobs that contain a State form or the State seal• Non State Forms Prints jobs that do not contain a State form or the State seal

The Indiana Archives and Records Administration (IARA) plays an important role with printing as they maintain responsibility for all documents classified as State Forms, including the artwork and specifications. Post Masters will route all requests to them when needed and communicate with the order contact person if they have questions or need additional information.

Define the Purchase TypeThe program includes two separate categories of purchasing aside from QPAs, Indiana Correctional Industries and Ability Indiana. Although similar in many respects, defining the correct type of purchase to be made is important due to the unique requirements and procedures specific to each.

• Commodities such as equipment and supplies.

• Procurement Contracts must be used when there is a need for a service over $2,500 and/or encompassing a term of 90 days or more.

Procurement Contract OptionsWithin the category of Procurement Contracts, the procurement agent must choose the specific document to be used that best suits the purchase being made. A link to the most current procurement contract templates can be found on the Procurement Training web page.

The templates include:

• Standard Terms and Conditions provided for consistency of contracts within that contract type

• Mandatory terms that may not be changed without explicit Indiana Department of Administration and the Office of the Attorney General (OAG) approval

• Non-Mandatory terms that may be changed within guidelines contained in Professional Services Manual and consideration of whether a change exposes the State agency to risk or not

Several documents are available for use when purchasing services. The following examples are presented as a guide,

but should not be considered all-inclusive.

AddendumThis contract document, generally used for the purchase of maintenance

and software licenses, should be used in any purchase where a supplier insists that their own standard/form contract be utilized.

Use of the Addendum with a supplier contract incorporates the

• State Forms • Non State Forms • Business card ordering• Reprographics/copy services

Visit the Printing and Mailing Services web page to find information, user guides, and detailed instructions that include all types of printing purchases.

All Printing Purchases begin with Post Masters

Printing and Mailing Services http://www.in.gov/idoa/2455.htmProcurement Training http://www.in.gov/idoa/2864.htm

Document used to modify, delete, or amend certain terms and conditions set forth in the Supplier’s contract, incorporating State contract provisions superseding Supplier terms not favorable to the State.

Addendum[ǝ’dendǝm] – noun

http://www.in.gov/idoa/2864.htmhttp://www.in.gov/idoa/2455.htmhttp://www.in.gov/idoa/2455.htmhttp://www.in.gov/idoa/2864.htm

12

individual agreements into each other and when read together, constitutes one integrated document. Any inconsistency, conflict, or ambiguity between the individual agreements is resolved by giving precedence and effect to the Addendum.

Addendum Development• When a contractor insists on using its own standard contract agreement, you should prepare

and attach the addendum. The addendum incorporates the State’s standard contract provisions. DO NOT SIGN THE CONTRACTOR’s FORM. All parties must sign the State’s Addendum instead.

• After the Addendum has been circulated for signature and approved by IDOA, IOT, Budget and the OAG, the agency may sign the form contract if the Contractor insists. The Addendum will take precedence over the Form Contract.

• The Addendum provides that certain clauses in the Contractor’s Form Contract are automatically deleted. Nonetheless, the agency should carefully read the Form Contract to ensure there are no other unacceptable terms.

• As with the Contract Boilerplate, certain clauses have been designated as required (mandatory) and must be included in every Addendum. The balance of the clauses is presented for your use and you should include as many as necessary to meet your agency’s needs. You can delete inapplicable clauses in the Addendum (but keep the heading and the paragraph number so that the reviewers can easily identify what has been deleted).

• Remove any instructional language from the clauses before inserting them in the contract.

• Fill in all blanks, even if using “Not Applicable” or “N/A”.

• Please include a completed Executive Document Summary (EDS) as the face sheet of the procurement contract being routed for signature when using the paper based method.

Contract for ServicesThe terms “contract” and “grant” are often used interchangeably and this misuse results in operational inconsistencies, confusion, inefficiency and waste. The confusion stems from the fact that a contract and a grant contain the same essential elements: competent parties, lawful subject matter, sufficient consideration and consent of minds. However, contracts create “State procurement relationships” and grants create “State assistance relationships”. IDOA and OAG will reject documents from State agencies that attempt to avoid the competitive procurement process necessary for a contract by inappropriately framing a contract as a grant. Each agency is responsible for reviewing the funding source that supports the grant or contract to assure the proper agreement is utilized.

A procurement contract should be used whenever the agency wishes to buy, lease, or exchange property or services for the direct benefit of the State agency. This is the standard buyer-seller relationship. Also, when a State agency’s principal purpose is to acquire an intermediary’s services, which ultimately may or may not be delivered to an authorized recipient, then a contract is required. When the term “competitive procurement” (i.e. the use of RFPs) is used, it refers to contracting for goods and services under a sealed bid or competitive negotiation procedure, and does not usually include grant proposals. For example, when an agency hires a private entity to perform a function or a duty which the State agency otherwise would perform itself, a procurement contract is necessary. Contracts contain clearly defined deliverables (what is being purchased) that tie the duties of the contractor to the payment.

Contract TerminationIDOA has established a process to assist you when an agency has determined that contract termination is in its best interest. Please use the termination request form at https://www.in.gov/idoa/files/ContractTerminationRequest.pdf and submit to [email protected] with sufficient time for IDOA’s review and approval before notice of

termination is sent to the contractor pursuant to the contract terms.

https://www.in.gov/idoa/files/ContractTerminationRequest.pdfmailto:contract_termination%40idoa.in.gov?subject=


Electronic Contracting Process

Statutory BackgroundThe Uniform Electronic Transactions Act is a uniform statute preparing State law for the electronic commerce era. Indiana adopted the Uniform Electronic Transactions Act at IC 26-2-8. IC 26-2-8-202 authorizes governmental agencies to determine whether, and the extent to which, they will send and accept electronic records and electronic signatures to and from other persons and otherwise create, generate, communicate, store, process, use, and rely upon electronic records and electronic signatures.1

Electronic records, electronic signatures, and electronic contracts are recognized and enforceable under the law. IC 26-2-8-106 provides the following:

(a) A record or signature may not be denied legal effect or enforceability solely because it is in electronic form.

(b) A contract may not be denied legal effect or enforceability solely because an electronic record or electronic signature was used in its formation.

(c) If a law requires a record to be in writing, or provides consequences if it is not, an electronic record satisfies the law.

(d) If a law requires a signature, or provides consequences in the absence of a signature, the law is satisfied with respect to an electronic record if the electronic record includes an electronic signature.

While most private contracts need only the parties to sign the contract for it to be valid, IC 4-13-2-14.1(a) requires that “A contract2 to which a State agency is a party must be approved by … the Indiana Department of Administration … the Budget Agency … and the Attorney General.” In addition, Indiana Code 4-13.1-2-2 provides that the Indiana Office of Technology shall “[r]eview … proposed contracts relating to information technology at the request of the Budget Agency”, and the Budget Agency has requested that IOT review all such contracts.

1 IC 26-2-8-102 (10) defines an “Electronic signature” as “an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record.”

2 “Contracts” include grants, and when used in this document, “contractor” also means “grantee”. While “contracts” also include leases and some other real property transactions, the process described in this document is not available for real property transactions or any other transactions which may require recordation or notarization.

Indiana Code 4-13-2-14.1 (c) provides:

The Indiana Department of Administration may adopt rules under IC 4-22-2 to provide for electronic approval of contracts. Electronic approval may include obtaining the equivalent of a signature from all contracting parties using an electronic method that does not comply with IC 5-24 (the electronic digital signature act), so long as the method allows the party to read the terms of the contract and to manifest the party’s agreement to the contract by clicking on an “ok”, an “agree”, or a similarly labeled button or allows the party to not agree to the contract by clicking on a “cancel”, “don’t agree”, “close window”, or similarly labeled button. Rules adopted under this subsection must provide for the following:

(1) Security to prevent unauthorized access to the approval process.

(2) The ability to convert electronic approvals into a medium allowing persons inspecting or copying contract records to know when approval has been given.

For contracts subject to IC 4-13-2-14.1, the State will send and accept electronic records of contracts and electronic signatures under IC 26-2-8-202. The following process is the only approved process for the electronic signing and approval of State contracts and will govern until such time as IDOA may adopt rules as contemplated by IC 4-13-2-14.1(c).

Use of PeopleSoft and the IDOA Supplier PortalAll electronic contracting will use the PeopleSoft Supplier Contract Management (SCM). PeopleSoft Financials serves as the State’s official book of record, and is a State-owned and supported system. Through the Indiana Office of Technology, security measures are in place to ensure the preservation of all recorded data with detailed plans for data

14

disaster recovery, including hot and cold sites.

PeopleSoft and the SCM documents are accessible only through the State’s Supplier Portal administered by Indiana Department of Administration. Each contractor or grantee is required to complete the State’s supplier registration process and obtain a unique PeopleSoft identification password. This process ensures the contractor understands the electronic signature process and agrees to execute contracts in that manner.

(See Attachment F to verify registration through PeopleSoft Financials).

The State’s standard contract and grant templates are loaded into SCM by IDOA or IOT personnel and will be kept updated without intervention by the agency. Contract templates that have been form-approved by the Office of the Attorney General can also be loaded into the SCM. SCM can allow the contractor, the Supplier, and all State agency reviewers to see changes to the standard template language.

SecurityA user ID and password is required for each individual who will access contract documents, both during review and negotiation, and at the time of signature.

User IDs are unique to each individual. Passwords are set by the State’s supplier registration system and provided electronically masked to the user. The user has the control to change his or her password and that password, whether portal or user-created, cannot be unmasked by anyone, including the State.

The person who will be signing the contract electronically will be assigned a unique ID and password in order to access contract documents for signature through the State’s Supplier Portal. The name of the person who will be signing and his/her ID will be verified as the Contract Administrator prepares a document for external signature.

Contractors may have multiple signatories, but each individual is required to e-sign documents while logged into the Supplier Portal/PeopleSoft under his/her own user ID and password.

A historical log of all system access and eSignature activity (the contractor and the State) is maintained in SCM records, and identified by user with a date/time stamp documenting the specific action. This information is also displayed within the application through navigation to SCM Document Management and Document Version History.

eSignature3

The Adobe electronic signature tool in Adobe is used in signing contract documents electronically (“eSignature”). It is an electronic signature under IC 26-2-8, and was selected based on several determining factors including:

Security in using PDF documents not available with other formats

No cost for contractors

Ease of use

Compliance with IC 4-13-2-14.1 and IC 26-2-8

The eSignature ProcedureThe State prepares a contract document for external electronic signature by the contractor, verifying that the contractor’s authorized signatory has been issued a user ID and password to access the State’s Supplier Portal. A system-generated notification is sent by email to the contractor as an alert that a contract document requires their review and signature.

The contractor’s authorized signatory must log into the State’s Supplier Portal using his / her assigned user ID and password, and download the contract document in Adobe PDF.

The contractor uses the Adobe signature tool to place his / her signature on the State’s contract document. The contractor has agreed to conduct business electronically at the time of registration on the Supplier Portal. This agreement is affirmed by the following statement which immediately follows the Non-Collusion and Acceptance clause and immediately precedes the eSignature:

I agree, and it is my intent, to sign this Contract by accessing State of Indiana Supplier Portal using the secure password assigned to me and by electronically submitting this Contract to the State of Indiana. I understand that my signing and submitting this Contract in this fashion is the legal equivalent of having placed my handwritten signature on the submitted Contract


and this affirmation. I understand and agree that by electronically signing and submitting this Contract in this fashion I am affirming to the truth of the information contained therein. I understand that this Contract will not become binding on the State until it has been approved by the Department of Administration, the State Budget Agency, and the Office of the Attorney General, which approvals will be posted on the Public Contracts Search on the Supplier Portal https://hr.gmis.in.gov/psp/paprd/EMPLOYEE/EMPL/h/?tab=PAPP_GUEST.

Completion of the ContractThe signed PDF document is uploaded into PeopleSoft by the contractor.

The State’s Contract Administrator is notified by e-mail when the contractor has signed and uploaded the document. Using the same procedure as the contractor, the State signs the document electronically.

3 The system selected does not utilize “digital signatures” as defined by IC 5-24-2-1.

With the eSignatures in place, the Contract Administrator routes the document for approval, using the electronic process by the necessary oversight agencies (IOT if applicable, IDOA, SBA, and OAG) through a predetermined workflow based on the document requirements.

When the required signatures and approvals are complete, the Contract Administrator dispatches and executes the contract. Each evening, an automatic process in the system will select all newly-executed contracts and send an email to the contractor and the IDOA.

The IDOA will move the contract to the State’s Transparency Portal for public view.

Legal EffectContracts formed using the preceding procedures are deemed in writing and will not be denied legal effect or enforceability solely because they are in electronic form.

https://hr.gmis.in.gov/psp/paprd/EMPLOYEE/EMPL

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Preparing Specifications To be certain that solicited bidders completely understand the requirements of the items or products to be purchased, a detailed specification must be provided. IC 5-22-5 declares that all specifications must promote the overall economy for the purpose intended and must encourage competition in satisfying the needs of the State of Indiana.

Good specifications will identify the requirements while allowing competition among bidders. They will also list methods for testing compliance with the specifications and provide for an equitable award.

Grammatical Style and Terminology

! Specifications are extremely important because they can mean the difference between getting what is needed and getting what is asked for.

Here are tips to use as a guide when choosing language for specifications: • Use the words “Must” or “Shall” to describe

mandatory requirements

• Use the words “Should” or “May” to describe features that are optional

• Requirements should be described using language that is as brief, clear, and concise as possible

• A definition of a word should be given if the meaning could be confusing

• Do not use terms that are proprietary to a particular manufacturer

• Do not use terms that are open to individual interpretation

• Consider using ranges or minimums and maximums where appropriate to allow for flexibility and additional competition

Types of SpecificationsThere are three basic types of specifications: Brand Name, Design, and Performance/Functional.

Use of the Brand Name type is the least recommended due to the potential for limiting competition. A combination of the Design and Performance/Functional types is considered ideal.

Brand Name � Advantage Requires less research if time is an issue Disadvantages Discourages competition; may lessen objectivity in evaluation and award

process

This type of specification is called “Brand Name” because it references a brand name, model number, catalog number, etc., that identifies a product made by a specific manufacturer as an example of the level of quality desired. This type of specification is advantageous when listing all of the requirements in detail is impractical or impossible, but the general design, quality, and performance requirements need to be addressed.

! When using this type, the statement “or approved alternate” must always follow the brand name description. This statement communicates to bidders that offers of alternative products will be considered if they are of the same or better quality than the brand name cited. Also, the word “alternate” is recommended rather than “equal” because it is extremely difficult to prove that two items are equal and bidders may try to challenge the agency’s judgment.

An act of describing or identifying something precisely or of stating a precise requirement. A detailed description of the design and materials used to make something.

Specification [,spesǝfǝ’kāSH(ǝ)n] – noun


When requesting name brand products only and not just listing them as a standard of quality, a justification must be provided explaining why a specific name brand is required and why alternate products cannot be considered. (See DPAP Solicitation Summary)

PeopleSoft Comments to Add When Using Brand Name SpecificationsPeopleSoft stores frequently used standard comments organized into specific categories available to be selected and copied to Requisitions, solicitations, and Purchase Orders. Comments may be added as Header information or to specific line items. When using brand name specifications, the following should be selected as Header information and copied to the Sourcing Event before bidders are solicited. The language (below) indicates to bidders the intent of a non-restrictive specification.

Select PeopleSoft Standard Comment:

Standard Type: BID

Comment ID: SPC

The specifications contained herein are non-restrictive. They are intended to establish criteria and guidelines for competitive bidding. Alternate bids may be reviewed; however, before they can be accepted, the supplier must supply with bid detailed manufacturer specifications to verify that alternate does meet specifications of bid determined by the Department of Administration and using State agency.

Design � Advantage Well suited for unique requirements, such as a limited amount of space to

accommodate a product

Disadvantages Can be restrictive; not well suited for off-the-shelf items; may not allow for advances in technology

The Design specification focuses on the physical and dimensional requirements of a product, as well as how it is actually fabricated. Many times when this type is used, the requested item is not available “off the shelf” and must be manufactured specifically to meet the needs of the user. It is commonly used for equipment, machinery, and vehicles not available on a QPA contract.

When used alone, this type can often restrict competition by eliminating the consideration of similar products because of minor differences in size or construction. To increase flexibility and allow for more competition, design requirements can be expressed using minimum and maximum values. This allows features to compete within ranges rather than meeting requirements with precision.

! When requesting items of a specific size that must be manufactured to the agency’s specific needs, it is very important that the dimensions given are accurate.

If a supplier provides a product manufactured specifically to dimensions we have provided and the product does not

“Blender – 32 oz. stainless steel container. Heavy duty for high-volume use. Two speeds, 3 H. P. commercial motor, rugged die-cast enameled zinc housing. Rubber cober plug and gasket provide a tight seal, 120 VAC, 50/60 Hz. Waring 7011S or approved alternate.”

Notice that not only is a brand name product referenced, but actual qualities of the product are listed as well. This provides further clarification to bidders regarding the quality of the requested item, as opposed to simply stating, “Blender – 32 oz. Waring 7011S or approved alternate.” Making an effort to reference a brand specification that is widely recognized throughout the industry (and is easily available for bidders to compare alternate products they may have to offer) can maximize competition.

Example: Brand Specification

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“fit”, an agency may be forced to accept and pay for a product that cannot be used. To ensure accuracy, bidders may be requested to do an on-sight inspection and measurement before providing a response.

“Commercial heavy-duty 27-lb. washer extractor with non-coin operated push-button controls. 10” riser frame and anchors, rust resistant metal frame with 12/quan ½” pre-drilled holes for anchoring. Must include 304 stainless cabinet front, sides, and top as well as inner and outer tubs. Machine dimensions to be 37” deep maximum and 30” wide maximum.”

Any time competition is restricted, justification must be provided explaining why the specifications must be met exactly. In this example, the dimensional requirements could restrict competition by possibly eliminating “standard” size washing machines from consideration. This can be justified by the fact that the laundry facility will only accommodate a washer of the requested size.

Example: Design Specification

Performance/Functional � Advantages Encourages competition because the end product may be achieved by different

means and can be a very useful tool for large ticket items for which there is very little competition. Also, this type allows end user to focus on needs rather than wants, and provides accommodation for advancements in technology.

Disadvantage Sometimes difficult to articulate “absolute” needsSpecifications written as “Performance” or “Functional” are not as detailed as far as design or physical dimensions, but focus instead on the result of the product’s performance or what it should accomplish. By placing more emphasis on the functional requirements, unnecessary “frills” are avoided (which usually keeps cost lower) and the requested product is less likely to become obsolete.

This type of specification tends to promote rather than restrict competition, because it allows any product that can meet the functional requirements to be considered.

Specification FormattingWhen writing specifications, there are two basic ways to display the specification requirements. These formats are referred to as “Equipment” and “Paragraph”.

Equipment FormatThis format uses a series of brief sentences describing each individual requirement. The sentences are followed by “Yes” and “No” checkboxes or blanks for bidders to indicate whether or not they can meet the specific requirement. For more complicated specifications, the sentences should be organized into categories identifying the major

“Electronic Parking Garage Access/Security System – System must allow assigned users entrance and exit without aid of an attendant 24 hours per day, seven days per week by use of access card, assigned personal code, or approved alternate method. System must log year, date, and time of each entrance and exit according to user, with the ability to provide reports of this information. System must accommodate in excess of 1,500 users. System must offer emergency power supply backup in the event of power failure.”

In this example, the functional requirements have been described, but how those requirements are to be met is left up to the bidder.

Example: Performance/Functional Specification


components.

The Equipment format is the preferred format because it:

• sets out clearly the important aspects of the purchase

• allows important traits to be highlighted

• helps bidders avoid missing or skipping a requirement

• requires bidders to be more cautious

• holds bidders accountable for their responses

! When using the equipment format, keep requirement sentences or statements brief and “to the point” placing the emphasis on the requirement.

Paragraph FormatThis format lists specification requirements using brief sentences or statements written in paragraphs (like in newspapers). As with the Equipment format, similar requirements should be organized into categories identifying the major components. However, this format is recommended for simpler items only.

ENGINE:

3-cylinder, 4-cycled, vertical overhead valve, liquid-cooled diesel engine with min. 24 HP (18.6kw) rating. Min. 57 cubic inch displacement Yes No

Engine produces 36 foot pounds of torque to ensure capability of climbing hills and mowing uneven slopes Yes No

ELECTRICAL:

12-volt battery with min. 500-CCA or 450-amp hour min Yes No

35-amp alternator, 40-amp manual reset circuit breaker Yes No

Dash-mounted ignition switch Yes No

TIRES/WHEELS:

Two front drive tires 23x8.50-12 or 23X10.50-12, tubeless, extra traction treads. 4-ply rating Yes No

Two rear steering tires, 16.6.50-8, rib tread, 4-ply rating Yes No

Example: Specification Equipment Format

Men’s Broadcloth Nightshirts

Polyester and cotton blend (65/35 or 50/50) broadcloth. Full cut with raglan sleeves (sleeve length to be approximately 20 inches from neck to bottom of sleeve). Open down back with 7 stainless steel grippers, crush resistant for closing. Reinforced all around the neck. Mid-calf length with shirttail hem. Bottom hem to be sewed with 8 – 10 stitches per inch. Sleeves/under arm sewn on 5-thread safety stitch serge. From top gripper to bottom of hem must be approximately 45 inches long. Solid pastels shall include colors such as light blue, mint green, yellow, lavender or similar shades. (No solid tan, black, red, navy, bright green, white or brown.) Small flowered prints are available in cheerful colors and patterns. Large variety of colors and patterns shall be provided. All clothing must contain permanent factory label stating factory contents and size. Techni-Flair or an approved alternate. Sizes to include XL and XXL.

Example: Specification Paragraph Format

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Specifications Using Equipment Trade-insState property may be used as a trade-in towards the purchase of a new item if the specifications are written instructing bidders to include the trade-in allowance in their response to the solicitation. A contact person and phone number (if different than the Procurement Agent) should be provided so that bidders may arrange a time to view the item to be considered if necessary.

Please also see State Surplus Requirements for detailed information and procedures involving trade-ins.

Assistance with Writing SpecificationsIf assistance is needed with writing specifications, please contact the Procurement Division, Strategic Sourcing Section.

Suppliers can often be a resource for researching and developing specifications, but should be consulted with caution, however, as they may try to encourage the development of specifications that are restrictive and proprietary to the products and services they specifically offer.

Initiate Purchase Request and Required Approvals

Create a RequisitionAll purchases from QPAs, Indiana Correctional Industries and Ability Indiana, regardless of dollar amount, must be initiated by creating a “catalog”, “web” or “special request” Requisition in PeopleSoft. Most of the products and services available from these sources can be located and selected from the eProcurement catalog using search criteria such as the item ID number. All other commodity and service requests, regardless of the dollar amount, must be initiated by creating a “special request” Requisition in PeopleSoft. Requisitions for these purchases will require an estimate representing the anticipated approximate cost for each line item and will not necessarily match the price quotes received from solicited bidders.

Identify Delivery Requirements on the RequisitionThe Requisition will require that a delivery date is specified.

Purchase Cost Minimum Delivery Date Required from the anticipated Sourcing Event Start Date

Less than < $5,000 7 Days

More than > $5,000 15 Days

For purchases less than $5,000, the date should be at least seven days from the date that the quotes were taken or seven days from the anticipated Sourcing Event Start Date. For purchases $5,000 or more, a minimum of 15 days from the anticipated Sourcing Event Start Date should be allowed to complete all of the required processing.

All information entered when creating the Requisition will electronically copy to the PeopleSoft SSE Event Details form used for soliciting bidders and eventually to the resulting Purchase Order. It is important to be certain that all pertinent information is included.

Instruction for creating Requisitions in PeopleSoft is available on the Procurement PeopleSoft Guides web page.

Requisition Routing Procedures and Special ApprovalsRequisitions saved and submitted through PeopleSoft are routed electronically to the necessary approval authorities within each agency and then to any necessary external approval authorities based on the United Nations Standard Product and Services Code (UNSPSC) identified. (For more details about UNSPSC, see UNSPSC Categories) An agency found to be applying incorrect UNSPSC categories to avoid special approval routing risks losing purchasing authority.

Telecommunications Equipment IOT (317) 232-3171Microfilm and Paper Shredders IARA (317) 233-1713Computer Hardware and Software IOT (317) 232-3171Multifunction Devices (MFD) IDOA (317) 234-0067Office Supply - Non Market Basket QPA IDOA (317) 234-0067

Special Approvals Contact Information

http://www.in.gov/idoa/2871.htm


Specifications Using Equipment Trade-insState property may be used as a trade-in towards the purchase of a new item if the specifications are written instructing bidders to include the trade-in allowance in their response to the solicitation. A contact person and phone number (if different than the Procurement Agent) should be provided so that bidders may arrange a time to view the item to be considered if necessary.

Please also see State Surplus Requirements for detailed information and procedures involving trade-ins.

Assistance with Writing SpecificationsIf assistance is needed with writing specifications, please contact the Procurement Division, Strategic Sourcing Section.

Suppliers can often be a resource for researching and developing specifications, but should be consulted with caution, however, as they may try to encourage the development of specifications that are restrictive and proprietary to the products and services they specifically offer.

Initiate Purchase Request and Required Approvals

Create a RequisitionAll purchases from QPAs, Indiana Correctional Industries and Ability Indiana, regardless of dollar amount, must be initiated by creating a “catalog”, “web” or “special request” Requisition in PeopleSoft. Most of the products and services available from these sources can be located and selected from the eProcurement catalog using search criteria such as the item ID number. All other commodity and service requests, regardless of the dollar amount, must be initiated by creating a “special request” Requisition in PeopleSoft. Requisitions for these purchases will require an estimate representing the anticipated approximate cost for each line item and will not necessarily match the price quotes received from solicited bidders.

Identify Delivery Requirements on the RequisitionThe Requisition will require that a delivery date is specified.

Purchase Cost Minimum Delivery Date Required from the anticipated Sourcing Event Start Date

Less than < $5,000 7 Days

More than > $5,000 15 Days

For purchases less than $5,000, the date should be at least seven days from the date that the quotes were taken or seven days from the anticipated Sourcing Event Start Date. For purchases $5,000 or more, a minimum of 15 days from the anticipated Sourcing Event Start Date should be allowed to complete all of the required processing.

All information entered when creating the Requisition will electronically copy to the PeopleSoft SSE Event Details form used for soliciting bidders and eventually to the resulting Purchase Order. It is important to be certain that all pertinent information is included.

Instruction for creating Requisitions in PeopleSoft is available on the Procurement PeopleSoft Guides web page.

Requisition Routing Procedures and Special ApprovalsRequisitions saved and submitted through PeopleSoft are routed electronically to the necessary approval authorities within each agency and then to any necessary external approval authorities based on the United Nations Standard Product and Services Code (UNSPSC) identified. (For more details about UNSPSC, see UNSPSC Categories) An agency found to be applying incorrect UNSPSC categories to avoid special approval routing risks losing purchasing authority.

Telecommunications Equipment IOT (317) 232-3171Microfilm and Paper Shredders IARA (317) 233-1713Computer Hardware and Software IOT (317) 232-3171Multifunction Devices (MFD) IDOA (317) 234-0067Office Supply - Non Market Basket QPA IDOA (317) 234-0067

Special Approvals Contact Information

Telecommunications Equipment

Manager: Indiana Office of Technology (IOT)IOT establishes contracts for telecommunications products and services to leverage the buying power of all State agencies. As part of this process, IOT establishes contracts with suppliers to document how and what can be ordered under the various contracts.

Microfilm and Paper Shredders

Manager: Indiana Archives and Records Administration (IARA)

Computer Hardware and Software

Manager: Indiana Office of Technology (IOT)IOT will review all Requisitions for the purchase of Information Technology (IT) related equipment and services within an average of three working days from submission for compliance with IOT policies, standards and guidelines; for most agencies this is done through a PeopleSoft Requisition.

Copiers, Printers, Fax Machines, Scanners, and Multifunction Devices (MFD)

Manager: IDOA Procurement Office machines approversWhen planning to purchase or lease this type of equipment, consolidation of features is recommended and should be considered. The QPA contract currently offers machines with the ability to copy, print, fax, and scan with a single piece of equipment. This consolidation of features uses much less energy, resulting in cost savings.

All purchases of copiers, printers, fax machines, multi-functional devices and scanners require IDOA Procurement Division review and approval, regardless of dollar amount. This requirement is applicable to all State agencies for all equipment regardless of the processing and/or printing speed. The Requisition must have a justification and very specifically explain the need for new equipment. Direct questions to

the IDOA Contract Manager over the QPA contract. The information outlined below must be provided to IDOA for review of these purchases. Responses to questions and statements are required.

□ 1) Was Chris Johnson or Phil Napariu from Ricoh involved in recommending this requested device? (Yes/No)

□ 2) Identify make and model of all requested devices. (If printer – include whether it will be used as a networked device or as a personal desktop. If personal desktop printer – please include reason)

□ 3) Identify all functions that the equipment will perform (i.e. Print, Copy, Fax, Scan, Color)

□ 4) Identify all physical addresses where the equipment will be delivered for usage. (Please align device to address)

□ 5) Identify the average total monthly volume (i.e. all devices being replaced) this requested device will fulfill

□ 6) Identify all make and models that will be eliminated as a result of the new devices, while identifying whether the eliminated devices are lease returns or owned

□ 7) Please include any additional comments you believe would be important for the IDOA reviewer

http://www.in.gov/idoa/2871.htm

22

Office Supply QPA non-market basket items

Manager: IDOA Office SupplyAny PeopleSoft Requisition that has non-market basket items included will be routed for IDOA approval once the Requisition is saved and submitted. In PeopleSoft, non-market basket items will be marked with an asterisk (*) in front of the item description.

If a Requisition contains any non-market basket item(s), the following information must be contained in the justification for each item or the Requisition will not be approved by IDOA.

□ 1) What line item(s) are non-market basket? □ 2) Why is each specific product needed? □ 3) What research was done to determine that

there is not a similar “Best Value” item available?

□ 4) If there is a similar “Best Value” product, what sets this item apart from the “Best Value” item?

□ 5) What does this product offer that other products don’t?

Specific instructions about entering PeopleSoft Requisitions for office supplies can be found on the Procurement

PeopleSoft Guides web page.

Non-Competitive Purchases

Purchases less than $500 only

CommoditiesThe requirement to purchase items available on QPA, through Indiana Correctional Industries, or from Ability Indiana work centers is applicable regardless of the purchase dollar amount. Items available from these sources must be purchased from these sources unless proper justification/approval is provided.

All purchases that fall under IDOA authority are to be entered in PeopleSoft as a Requisition and taken to a Purchase Order.

When purchasing products or services not available from a QPA, Indiana Correctional Industries and Ability Indiana, IDOA permits commodity purchases less than $500 to be made without soliciting competition. This policy exists to provide an opportunity to purchase from local suppliers and reduce administrative/processing costs for minor purchases. It is very important to continue purchasing recycled content products and to include the minority and woman-owned business community whenever possible.

An authorized procurement agent must approve all purchases. If the agency does not know the designated procurement agent, the current agency purchasing administrators can be found on the Purchasing Contacts web page.

Procurement ContractsWhen using the paper based method, it is important that the correct procurement contract accompanied by the rest of the required documents is sent to IDOA Procurement for signature, even though seeking competitive quotes

is not required. All contracts must be routed to the Department of Administration for signature/approval. There are no exceptions.

Proc PeopleSoft Guides http://www.in.gov/idoa/2871.htmPurchasing Contacts http://www.in.gov/idoa/2479.htm

http://www.in.gov/idoa/2871.htmhttp://www.in.gov/idoa/2871.htmhttp://www.in.gov/idoa/2479.htmhttp://www.in.gov/idoa/2479.htmhttp://www.in.gov/idoa/2871.htmhttp://www.in.gov/idoa/2479.htm


Specific instructions about entering PeopleSoft Requisitions for office supplies can be found on the Procurement

PeopleSoft Guides web page.

Non-Competitive Purchases

Purchases less than $500 only

CommoditiesThe requirement to purchase items available on QPA, through Indiana Correctional Industries, or from Ability Indiana work centers is applicable regardless of the purchase dollar amount. Items available from these sources must be purchased from these sources unless proper justification/approval is provided.

All purchases that fall under IDOA authority are to be entered in PeopleSoft as a Requisition and taken to a Purchase Order.

When purchasing products or services not available from a QPA, Indiana Correctional Industries and Ability Indiana, IDOA permits commodity purchases less than $500 to be made without soliciting competition. This policy exists to provide an opportunity to purchase from local suppliers and reduce administrative/processing costs for minor purchases. It is very important to continue purchasing recycled content products and to include the minority and woman-owned business community whenever possible.

An authorized procurement agent must approve all purchases. If the agency does not know the designated procurement agent, the current agency purchasing administrators can be found on the Purchasing Contacts web page.

Procurement ContractsWhen using the paper based method, it is important that the correct procurement contract accompanied by the rest of the required documents is sent to IDOA Procurement for signature, even though seeking competitive quotes

is not required. All contracts must be routed to the Department of Administration for signature/approval. There are no exceptions.

Proc PeopleSoft Guides http://www.in.gov/idoa/2871.htmPurchasing Contacts http://www.in.gov/idoa/2479.htm

Competitive Solicitation MethodsA competitive solicitation (procurement) method is required for all purchases $500 or more and begins after considering the QPAs, Indiana Correctional Industries and Ability Indiana, defining the type of purchase, writing the specifications, creating the Requisition in PeopleSoft, and the Requisition completing the required routing process for all necessary approvals.

The estimated total dollar amount of the purchase is the factor used to determine which solicitation method is required.

Purchases $500 to $5,000

Informal QuotesCommodities $500 to $5,000

As a method of soliciting competitive pricing, contacting at least three bidders by phone, email, fax or mail and requesting price quotes is acceptable for commodity purchases with an estimated total dollar amount less than $5,000.

The company names, price quotes received, date of the conversation, persons talked with, and the basis for recommending/making an award should be documented using the DPAP Solicitation Summary. This same information must be entered in the justification field of the PeopleSoft Requisition if the agency/approvers require it. Instruction for processing Requisitions is available on the Procurement PeopleSoft Guides web page.

If the resulting award price of the informal quotation process is more than $2,500, the awarded supplier must complete a Quotation Confirmation form (Attachment A) (or SSE Event Details form produced in PeopleSoft) and initial/date (anywhere in white space) the Terms and Conditions document (see Templates and Documents, Attachment A).

Procurement Contracts $500 to $2,500

As a method of soliciting competitive pricing, contacting at least three bidders by phone, email, fax or mail and requesting price quotes is acceptable for Procurement Contract purchases with an estimated total dollar amount less than $2,500.

The company names, price quotes received, date of the conversation, persons talked with, and the basis for recommending/making an award should be documented using the DPAP Solicitation Summary. This same information must be entered in the justification field of the PeopleSoft Requisition if the agency/approvers require it. Instruction for processing Requisitions is available on the Procurement PeopleSoft Guides web page. The awarded supplier must complete the correct procurement contract for signature/approval routing.

Informal Written QuotesAlthough the solicitation package of standard forms is not required for solicitations within this estimated dollar amount, if the procurement agent or designee chooses to include them with the SSE Event Details form produced in PeopleSoft and Terms and Conditions, all information contained in the bidder responses returned must be considered during evaluation.

STEP 1: Create the Sourcing EventThe Requisition created in PeopleSoft initiating the purchase to be made should be copied to a PeopleSoft Strategic Sourcing Event once it has successfully completed the required approval routing and the Budget Check status is “Valid”.

Instruction for completing the PeopleSoft process is available on the Procurement PeopleSoft Guides web page.

Open and Close Date RequirementsWhen preparing the Sourcing Event in PeopleSoft, a specific date and time that bidder responses are sent and must be returned is required. The “Start Date” is the approximate date that the solicitation is sent to the prospective bidders; the “End Date” is the date and time that bidder responses are due.

As informal quotations are acceptable for commodity purchases within this dollar amount, written bidder responses within this dollar amount may be requested as quickly as needed. Sundays or holidays within the requested time

Proc PeopleSoft Guides http://www.in.gov/idoa/2871.htm

http://www.in.gov/idoa/2871.htmhttp://www.in.gov/idoa/2871.htmhttp://www.in.gov/idoa/2479.htmhttp://www.in.gov/idoa/2479.htmhttp://www.in.gov/idoa/2871.htmhttp://www.in.gov/idoa/2479.htmhttp://www.in.gov/idoa/2871.htmhttp://www.in.gov/idoa/2871.htmhttp://www.in.gov/idoa/2871.htmhttp://www.in.gov/idoa/2871.htm

24

frame should be considered and excluded when specifying the date and time that responses are due.

Selecting Bidders to SolicitBidders (and Suppliers) in PeopleSoft can be found by searching for the product/service categories (UNSPSC Categories) identified in their bidder registration. Minority Business Enterprises, Women Business Enterprises, Indiana Veteran Owned Small Businesses and Small Businesses are easily identified within each group.

The procurement agent or designee must select at least three bidders to solicit for all purchases $500 or more.

Instruction for accessing bidder/Supplier UNSPSC information and selecting them in PeopleSoft is available on the Procurement PeopleSoft Guides web page.

All agencies are responsible (and will be held accountable) for meeting the State’s goals for minority and woman-owned business participation. Each agency may work toward accomplishing these goals at their own discretion. IDOA encourages each agency to include MBEs, WBEs, IVOSBs and Small Businesses in solicitations whenever possible.

STEP 2: Prepare and Send the Solicitation After the Sourcing Event has been created and bidders selected for solicitation, generate the hard copy forms for each bidder selected. The SSE Event Details form and the Terms and Conditions document may be emailed, faxed, or mailed to prospective bidders. The same method for dispersing the request should be used for all bidders solicited.

STEP 3: Follow-up If Required

! If the award resulting from the solicitation process is more than $2,500, the awarded supplier must complete Quotation Confirmation Form (or SSE Event Details form produced in PeopleSoft) and initial/date (anywhere in white space) the Terms and Conditions document (Templates and Documents, Attachment A). Completing the Quotation Confirmation can either detail the line items requested (as currently detailed on the SSE Event Details form) or it can refer to the bidder’s attached quote sheet.

All quotation information received from bidders is confidential until an award has been made, the Supplier has accepted and/or a Purchase Order has been encumbered.

Procurement contract purchases with an estimated dollar amount more than $2,500, including maintenance and software, require formal solicitation according to the procedures outlined in the section Purchases $5,000 to $75,000.

Proc PeopleSoft Guides http://www.in.gov/idoa/2871.htm M/WBE Participation Goals http://www.in.gov/idoa/mwbe/2494.htm

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Purchases $5,000 to $75,000

Formal Written QuotesThe SSE Event Details form and the standard forms for solicitation (referred to collectively as the “solicitation package”) are required as the instrument for soliciting competitive price quotes based on the type of purchase and estimated total cost within the parameters below.

• Commodities: $5,000 - $75,000

• Procurement Contracts: $2,500 - $75,000

If seeking competitive quotes is not possible, documentation must be provided in the Requisition justification field explaining the specific circumstances and be covered by a Request for Special Procurement (State Forms, Attachment A).

! Note: When sending out a solicitation for a procurement contract be sure to include the appropriate contract template with the solicitation package.

STEP 1: Create the Sourcing EventThe Requisition created in PeopleSoft initiating the purchase to be made should be copied to a PeopleSoft Strategic Sourcing Event once it has successfully completed the required approval routing and the Budget Check status is “Valid.”

Instruction for completing the PeopleSoft process is available on the Procurement PeopleSoft Guides web page.

Start and End Date Requirements When preparing the Sourcing Event in PeopleSoft, a specific date and time that bidder responses are sent and must be returned is required. The “Start Date” is the approximate date that the solicitation is sent to the prospective bidders; the “End Date” is the date and time that bidder responses are due.

! For purchases estimated to be over $5,000, bidders must be given at least seven days to respond excluding Sundays or holidays. This must be able to be verified based on the difference between the Start Date and End Date identified on the Sourcing Event.

Delivery RequirementsWhen specifying the required delivery date for commodity purchases, a minimum of 15 days from the Sourcing Event End Date should be allowed.

Additional Information for BiddersPeopleSoft offers users the opportunity to add instructions or information bidders may need to provide a complete response to solicitations in the form of Header and Line Comments. Header Comments entered will print on the SSE Event Details form before the line items are listed. Line Comments will print immediately following the line item it is associated with.

In addition to allowing manual comments to be entered as needed, PeopleSoft also stores frequently used standard comments organized into specific categories available to be selected and copied to Requisitions, solicitations, and Purchase Orders. These comments, too, may be added as Header information or to specific line items.

Proc PeopleSoft Guides http://www.in.gov/idoa/2871.htm

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PeopleSoft Preprogrammed Comments

Indiana Small Business Preference Compliance RestrictionsTo insure that bidders are aware of compliance restrictions imposed by claiming the Indiana Small Business

Preference, the following should always be selected as a Header Comment and copied to the Sourcing Event before bidders are solicited.

The language (below) indicates to bidders the constraints involved when an award is based on this preference having been claimed.


Std Type: BID

Comment ID: ISBP

NOTICE TO INDIANA SMALL BUSINESS BIDDERS

The Supplier assures that if they are receiving this award based on the Indiana Small Business Preference that the Supplier will be performing a minimum of 80% of the work involved with their own forces. This contract is not assignable either in whole or in part, nor shall it be subcontracted after award without the State’s prior written consent.

By signing the certification page of the solicitation package you are certifying adherence to all bid requirements as well as the above notice.

Federal Funding Source ConsiderationsIf the purchase to be made is intended to be paid for using federal funds, special attention must be given to the fact that some federal grants do not allow geographic preferences (see Purchasing Preferences) to be considered in solicitation evaluations. The following should be selected as a Header Comment to inform bidders that evaluation criteria inconsistent with federal regulations will not be considered.


Std Type: BID

Comment ID: FEDE

If any one or more of the listed criteria on which the responses to this quote or bid will be evaluated are found to be inconsistent or incompatible with applicable federal laws, regulations or policies, the specific criterion or criteria will be disregarded and the responses will be evaluated without taking into account such criterion or criteria.

Bidder Profile RegistrationAny company or business desiring to participate in State of Indiana procurements is encouraged to complete the online bidder registration. All bidders selected to receive an SSE award or awards containing sub-participation

must complete registration which allows you to process a Purchase Order or SCM contract. The following should be selected as a Header Comment.

Select PeopleSoft